Euro sags as ECB holds its ground

MARKET NEWS

FRANKFURT -- The euro slipped below the $0.89 level last week after the European Central Bank again declined to cut eurozone borrowing costs.

Expectations prior to the meeting had been split. Although there has been a succession of downbeat data from the eurozone in the aftermath of the September 11 attacks on the US, the full impact is yet to be shown. Inflation -- perhaps the ECB’s biggest problem -- in the eurozone has also fallen recently, leading to a call for "decisive action" from Euro